INSUBCONTINENT EXCLUSIVE:
Country's per-capita consumption of electricity "is way below the global average," Mr Adani said.The billionaire behind the controversial
Carmichael coal mine in Australia is hitting back at criticism the endeavor will be both unprofitable and too dirty.In an interview in
Delhi, Gautam Adani took aim at two major faults opponents have flung at the development: that the mine's low-quality coal won't earn
enough money to justify his $2 billion investment, and that the world must abandon the fuel in favor of renewable energy to avoid
catastrophic climate change."If the project wasn't viable, we wouldn't have pursued it," said Mr Adani, whose net worth of $9.8 billion
makes him country's sixth-richest person, according to the Bloomberg Billionaires Index
"Renewable energy is good for the nation, but it can't meet our baseload power needs."Mr Adani bought the resource in Australia's Galilee
Basin in 2010 as companies rushed for overseas energy supplies amid forecasts of booming demand
But as coal prices fizzled through the first half of the decade, Carmichael's output -- closer to lower-quality Indonesian coal than the
high-value varieties Australia is known for -- is seen unable to fetch a price strong enough to be profitable."The commerciality of Adani's
Carmichael mine remains challenging given the significant capital spend and low-quality thermal coal product expected from the mine," said
Brent Spalding, a principal analyst at Wood Mackenzie.Climate WarningsAustralia's Newcastle coal, a benchmark in Asia, would need to rise
above $100 a metric ton, from about $78 now, for Carmichael to break even, according to Spalding.Carmichael, which cleared final state
approvals last month, will open up a new mining basin in the Australian outback amid increasingly dire warnings of the need to cut carbon
emissions to avoid the ecological and economic havoc of climate change
Though coal is the most carbon-intensive fossil fuel, Gautam Adani has found a relatively friendly host country in Australia, where the
economic heft of the resource industry helped re-elect a pro-coal federal government and overcome staunch opposition from
environmentalists."We entered Australia with two overarching goals; contributing to energy security in India and creating job opportunities
for the locals," said Mr , 57, who started as a diamond trader in Mumbai before setting up Adani Group in 1988
His conglomerate -- spanning ports, energy and mining -- has become one of country's key infrastructure service providers, while also
venturing overseas.Surplus GenerationCoal's use has been on the decline in Europe and the US amid cheaper alternatives and pressure to
ditch the most-polluting fossil fuel
Yet it dominates power production in much of Asia, a position it's expected to sustain despite a boom in cleaner sources, such as wind and
solar, as energy demand continues to grow.Mr Adani said the board approved 10 million metric tons of annual output from Carmichael's first
phase, which will head to his power plants in India, including Mundra and Godda
Adani Group is headquartered in Gujarat.Country's per-capita consumption of electricity "is way below the global average," Mr Adani said
"India's development is linked to the availability of more power
And coal will play a big role in this as a baseload supplier."Challenges supplying reliable power to every home have been more about
distribution than whether it has enough power plants or coal
The nation already has a surplus of generation capacity, but it's money-losing, debt-saddled state utilities struggle to purchase and
distribute enough power, leaving some power stations shuttered and homes in the dark.When the company decides to raise the capacity of
Carmichael -- peak annual capacity is now seen at 27 million tons, down from an original 60 million -- it will explore selling washed coal
to buyers in Japan and Korea, according to Mr Adani
Construction has already begun, he said, reiterating the company's two-year timeline for first output."The need of the hour," Mr Adani
said, "is to get started."Get Breaking news, live coverage, and Latest News from India and around the world on TheIndianSubcontinent.com
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